Magnetar Capital is set to launch its new event-driven fund on October 1 with as much as $200 million.
The firm is launching the fund in anticipation of an increase in mergers and acquisitions activity. The $7.1 billion firm has been staffing up for the launch, having recently hired Julian Frazzo of London-based De Putron Fund Management. Frazzo joined the firm in July as a senior portfolio manager and will assist in the management of the fund alongside several other senior portfolio managers. The fund will be managed by firm co-founder Alec Litowitz.
Calls to Magnetar were referred to a spokeswoman who declined to comment.
Magnetar was founded in 2005 by Litowitz, a former Citadel Investment Group trader, and ex-Glenwood Partners president Ross Laser. The firm’s assets have vacillated substantially over the past few years. Litowitz and Laser launched the firm with $1.7 billion in 2005 and grew it to a peak of $8.3 billion as of January 1, 2008. But the flagship fund lost about 30% in 2008, leading the firm to raise its gate. The flagship gained about 20% in 2009, but assets declined to $6.09 billion as of July 1, 2009. Assets rebounded to $6.8 billion as of January 1, 2010 and $7.1 billion as of July 1.
—Suzy Kenly